Dion Entertainment Corp -
Border's injunction application from Louis Dion rescheduled
Dion Entertainment Corp DIO
Shares issued 52,267,597 1999-10-18 close $1.52
Tuesday Oct 19 1999
See Border Capital Corp (BOP) News Release
Border Capital Corp. reports that the court application for an injunction against Border and its related parties by Louis Dion, Leo Dion and others is rescheduled from Oct. 15, 1999, to Oct. 21 and 22, 1999.
The court proceedings commenced by the Dions and others on Sept. 28, 1999, pre-empted closing of the $6.5-million (U.S.) acquisition of BingoNet Inc. by Border's subsidiary, Border Capital (Nevada) Corp., on Sept. 30, 1999. The principal of BingoNet Inc. has asserted a claim against Border Capital (Nevada) Corp., for specific performance of the March 25, 1999, sale and purchase of BingoNet Inc., by payment of the $5.7-million (U.S.) balance of the purchase price. As a result Border will continue to pursue every opportunity to complete the BingoNet acquisition upon receipt of the court decision in the pending injunction application.
BingoNet also asserts that the injunctive relief sought by the Dions will cloud title to the patent rights assigned to IBC Investments Limited under an April 14, 1996, assignment agreement with BingoNet Inc. Consequently, BingoNet Inc. is alleging that the actions taken by the Dions will cause a reversion of the patent rights under the terms of the assignment agreement. Management of Border is of the view that should the injunction be granted, it could impair Border's ability to strongly defend against the claims being asserted by BingoNet Inc. In the event that the injunction is dismissed, Border management believes such claims for patent reversion by BingoNet are unsubstantiated.
Management for Border and IBC view the injunction application as frivolous and are seeking to have the matter dismissed. Border has instructed counsel to vigorously prosecute all available legal recourse against the Dions and Dion Entertainment Corp. (Toronto Stock Exchange: DIO).
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